Smartwings also challenging US government’s 737 Max settlement with Boeing
A legal battle over Boeing’s 2021 settlement of 737 Max-related fraud charges continues playing out in US court, with two European airlines accusing Boeing of failing to abide by the deal. LOT Polish Airlines and Czech carrier Smartwings are arguing that Boeing has not rightly reimbursed them hundreds of millions of dollars in damages stemming from the 737 Max’s 20-month grounding. LOT has also asked the judge to reopen Boeing’s settlement with the US Department of Justice (DOJ). An attorney for crash victims’ beneficiaries has made a similar request. “Boeing has an obligation to fairly pay out $1.77b to Smartwings and other airlines, appears not to be doing so and refuses to disclose anything about its handling of the agreed payments,” Prague-based Smartwings said earlier this month in a filing with US District Court for the Northern District of Texas. Boeing in 2021 reached a “Deferred Prosecution Agreement” with the DOJ, settling criminal charges that it defrauded the FAA as part of the 737 Max certification. In exchange for prosecution immunity, Boeing agreed to pay $1.77b to customers for grounding-related damages, $500m to crash victims’ beneficiaries and $244m in criminal penalties. Smartwings and LOT began challenging the settlement late last year. Those challenges remain ongoing. “Boeing has been extremely secretive about the airline fund, and the few details that have leaked out have suggested that Boeing is not administering it fairly,” Smartwings wrote in November 2022 court filings. It said some airlines may have received “outsized settlements, while others like Smartwings receive nothing”. Smartwings said Boeing owed it “hundreds of millions of dollars” in grounding-related damages. LOT asked the judge to reopen Boeing’s settlement for possible revision on grounds Boeing violated the agreement for failing to reimburse LOT. The airline has pegged its damages at $250m or more. LOT and Smartwings also fault the DOJ for giving Boeing “near total discretion” over customer reimbursements. They have asked the court for oversight and an accounting. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-01-24/star/smartwings-also-challenging-us-government2019s-737-max-settlement-with-boeing
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Smartwings also challenging US government’s 737 Max settlement with Boeing
A legal battle over Boeing’s 2021 settlement of 737 Max-related fraud charges continues playing out in US court, with two European airlines accusing Boeing of failing to abide by the deal. LOT Polish Airlines and Czech carrier Smartwings are arguing that Boeing has not rightly reimbursed them hundreds of millions of dollars in damages stemming from the 737 Max’s 20-month grounding. LOT has also asked the judge to reopen Boeing’s settlement with the US Department of Justice (DOJ). An attorney for crash victims’ beneficiaries has made a similar request. “Boeing has an obligation to fairly pay out $1.77b to Smartwings and other airlines, appears not to be doing so and refuses to disclose anything about its handling of the agreed payments,” Prague-based Smartwings said earlier this month in a filing with US District Court for the Northern District of Texas. Boeing in 2021 reached a “Deferred Prosecution Agreement” with the DOJ, settling criminal charges that it defrauded the FAA as part of the 737 Max certification. In exchange for prosecution immunity, Boeing agreed to pay $1.77b to customers for grounding-related damages, $500m to crash victims’ beneficiaries and $244m in criminal penalties. Smartwings and LOT began challenging the settlement late last year. Those challenges remain ongoing. “Boeing has been extremely secretive about the airline fund, and the few details that have leaked out have suggested that Boeing is not administering it fairly,” Smartwings wrote in November 2022 court filings. It said some airlines may have received “outsized settlements, while others like Smartwings receive nothing”. Smartwings said Boeing owed it “hundreds of millions of dollars” in grounding-related damages. LOT asked the judge to reopen Boeing’s settlement for possible revision on grounds Boeing violated the agreement for failing to reimburse LOT. The airline has pegged its damages at $250m or more. LOT and Smartwings also fault the DOJ for giving Boeing “near total discretion” over customer reimbursements. They have asked the court for oversight and an accounting. <br/>
